December 1, 2016
For many boards at member-owned clubs, partnering with an experienced owner operator is the best thing they could do to financially strengthen their club, but the idea is often pushed aside because they fear the reaction from members. Board members worry that the membership will not embrace their plan, even when they know this is what is best for the club’s future. But members at every club typically vote 90-to-100 percent in favor of a plan to recapitalize with us. Board members at clubs like MacGregor Downs in Raleigh, NC, were shocked when members voted 93 percent in favor of a recapitalization with us. Members vote in high favor every time for a partnership with Concert Golf, and here’s why:
Recapitalization pays off the club’s debt forever. Taking on debt to avoid recapitalization is risky, and there isn’t always a lender willing to finance the improvements that are necessary for the club. In the event that a bank loan can be secured, the club is now committed to years of high principal and interest payments.
- Member Assessments
Concert Golf never, ever assesses members. Members are already paying dues for routine club maintenance and capital projects. When clubs ask for additional money, it can cause a membership meltdown.
- Extra Dues
Recapitalization also prevents members from having to pay extra dues, which are essentially just assessments spread out over time. A $100 per month increase might not seem like a lot to tack onto current dues, but it could keep your club from being competitively priced.
- Member Debt
It is no secret that every club has members who are wealthier than others, so it seems reasonable to ask them to fund capital projects. But these members typically want to be repaid, so this is merely a different kind of debt. Recapitalization eliminates the need to ask the club’s wealthiest members for additional money. When a club is faced with these challenges, bringing in a partner like Concert golf makes sense. Not only does Concert Golf eliminate financial barriers that allow clubs to thrive again, we also provide decades of professional club management and operation experience – giving members and their boards time to enjoy their clubs.